Item 4 - PH on MWMC Reg. SDCs - Laserfiche WebLink

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ATTACHMENT D (~ Public Works Engineering City of Eugene MEMORANDUM 8,8 Pearl Street Eugene, Oregon 97401 (541) 682-5291 (541) 682-5032 FAX Date: June 7, 2004 To: Mayor Torrey and City Council From: Fred McVey, 682-5216 Engineering Data Services Manager Subject: Supplemental Information on MWMC SDC Rate Calculation This memorandum provides two pieces of supplemental information as requested by Council in a work session on May 19, 2004 on the Metropolitan Wastewater Management Commission (MWMC) proposed regional wastewater system development charge (SDC) methodology and rates. Provided are a detailed illustration of the calculation of proposed SDC rates for example development types and a comparison of the effects of proposed SDC rates on these development types in relation to wastewater SDCs in other Oregon communities. Calculation of Proposed SDC Rates In the May 19, 2004 work session, Councilors commented that follow-up information was needed to clarify the calculation of proposed charges (rates) prior to the public hearing on resolutions adopting modifications to the SDC methodology and rates (scheduled for June 14, 2004). While the proposed methodology describes the charge calculation in concept, it does so without referencing the specific numbers for future project costs since these costs are subject to change independent of the methods for calculation of the SDC. As a result, it was unclear to Councilors how the SDC for a particular development, as reflected in the proposed SDC Schedule, was derived. This section of the memorandum presents the results of the application of the SDC methodology to MWMC's existing asset value and proposed 20-year project list. SDC calculations are presented from the proposed rate schedule backwards into the methodology - working from the end (the SDC schedule for various development types) to the beginning (growth capacity analysis and development of the SDC cost basis). SDC Schedule The SDC for regional wastewater is based on a development's estimated claim or demand on treatment system capacity. Demand on treatment system capacity can be estimated by the volume and strength of wastewater discharge from various types of development. In order to determine the SDC for a particular development, the amount of discharge and pollutant loading of the discharge is estimated based on the size and type of development. The size of